Light has an enormous potential for data transmission with very high data rates. This is basically a consequence of the high optical frequencies, which also allow optical systems to have very broad bandwidths. For example, the wavelength range from 1.3 μm to 1.6 μm, which may be transmitted through an optical fiber, corresponds to a bandwidth as large as 43 THz, which is orders of magnitude higher than that of any electrical cable. This capability is being tapped to serve unprecedented rate of Internet traffic growth, which needs deployment of optical transmission systems with bit rates higher than rate of currently available 40 Gb/s systems. However, at those data rates, such as 100 Gb/s, signal quality is significantly degraded mainly due to impact of polarization mode dispersion (PMD), and intra-channel nonlinear effects. Although, the main components related to electrically time-division multiplexed (ETDM) transceivers operating at 100 Gb/s are becoming commercially available, they are still expensive. On the other hand, there is a possibility to use commercially available components operating at lower speed as an alternative approach to enable transmission at 100 Gb/s and beyond.